Debt investors

Kingfisher finances its operations using a number of funding instruments, including medium term note debt, bank borrowings and leases.

As at 31 July 2019 Kingfisher had c. £2.4 billion of net debt on the balance sheet, which includes the c. £2.6 billion lease liability under IFRS 16. The ratio of the Group’s net debt to EBITDA on a moving annual total basis is 1.8 times as at 31 July 2019. At this level Kingfisher has financial flexibility whilst retaining an efficient cost of capital.

A reconciliation of net debt to EBITDA(1) is set out below:

  2019/20
Moving annual total
£m
2018/19
Full Year
£m

Retail profit

900

924

Central costs

(51)

(49)

Transformation P&L costs

(84)

(120)

Depreciation and amortisation

544

535

EBITDA

1,309

1,290

Net debt

2,384

2,542

Net debt to EBITDA

1.8x

2.0x

(1) Restated for IFRS 16

Kingfisher aims to retain its solid investment grade credit rating whilst re-investing in the business where economic returns are attractive and paying a healthy annual dividend to shareholders. After satisfying these key aims and taking into account the economic and trading outlook, any surplus capital would be returned to shareholders.

Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment of debt at its maturity and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows.

For any questions or queries please contact:

Gaylene Kendall
Group Tax and Treasury Director
Gaylene.Kendall@kingfisher.com

Maj Nazir
Group Investor Relations Director
Maj.Nazir@kingfisher.com